The general position at Tientsin is unchanged. No incidents have been reported. The milk situation is fairly satisfactory: supplies are good but continue to be subject to delays at the barriers.

As regards the second part of the question, since 15th July preliminary conversations have been proceeding at Tokyo between His Majesty's Ambassador and the Japanese Minister for Foreign Affairs before starting negotiations for the settlement of the situation at Tientsin. At the outset of the discussions, the Japanese Government expressed the view that, if progress was to be made in the removal of misunderstandings and the establishment of better relations, it was essential to recognise the background against which the situation at Tientsin should be viewed. This had nothing to do with His Majesty's Government's China policy but was a question of fact. Hostilities were proceeding in China on a large scale. The Japanese Army had to provide for its own security and maintain public order in the occupied areas and was, therefore, obliged to take action to see that these causes were not prejudiced.

In order to clear the way for the Tientsin discussions, His Majesty's Government have accordingly agreed upon the following formula with the Japanese Government:
His Majesty's Government in the United Kingdom fully recognise the actual situation in China where hostilities on a large scale are in progress and note that, as long as that state of affairs continues to exist, the Japanese forces in China have special requirements for the purpose of safeguarding their own security and maintaining public order in regions under their control and that they have to suppress or remove any such acts or causes as will obstruct them or benefit their enemy. His Majesty's Government have no intention of countenancing any act or measures prejudicial to the attainment of the above-mentioned objects by Japanese forces and they will take this opportunity to confirm their policy in this respect by making it plain to British authorities and British nationals in China that they should refrain from such acts and measures.

Can the right hon. Gentleman give an assurance that nothing will be agreed to in these forthcoming negotiations which is calculated to impair Chinese currency, or to impair the right of this country to grant credits to the Chinese Government for any purpose whatsoever?

Do not these concessions, in effect, constitute a de facto recognition of Japanese sovereignty in respect of those parts of Chinese territory which are now under the control of the Japanese armed forces?

The officer in charge of His Majesty's Embassy at Peking has been informed by his Japanese colleague that no formal trial has started and that preliminary investigations are still proceeding. His Majesty's Ambassador at Tokyo is maintaining the closest touch with the Japanese Government, and my Noble Friend trusts that in view of the improved atmosphere this question may soon be settled.

asked the Prime Minister whether he has any information as to the safety of the personnel of the English Presbyterian Mission Hospital at Chuanchow, in the Swatow-Fuchien district of China; and whether supplies of food and drugs are now available?